20-F: Kaspi.kz Reports Strong Financial Results for Fiscal Year 2024, Demonstrating Continued Growth and Profitability

Kaspi.kz announces robust financial performance for FY2024, driven by growth across its Payments, Marketplace, and Fintech platforms.

Summary

• Kaspi.kz reported a consolidated revenue of 2,532 billion for FY2024, a 32% increase compared to the previous year.
• The company's consolidated net income reached 1,057 billion, representing a 25% year-over-year growth.
• The Payments platform saw a 24% increase in net income, reaching 382 billion, with TPV growing by 31% to 37,229 billion.
• The Marketplace platform experienced a 41% increase in net income, amounting to 348 billion, and GMV grew by 44% to 5,975 billion.
• The Fintech platform's net income increased by 12% to 327 billion, with TFV growing by 30% to 10,305 billion.
• The company's NPLs represented 5.4% of its loan portfolio as of December 31, 2024.
• Kaspi.kz acquired a controlling stake in Hepsiburada in January 2025 for approximately $1,127 million.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong financial results and strategic growth initiatives. The acquisition of Hepsiburada is a significant step towards international expansion. However, there are also some risks and challenges mentioned, such as economic conditions and regulatory changes.

Positives

• Strong growth in revenue and net income across all three platforms.
• Increase in TPV, GMV, and TFV indicates growing customer engagement.
• Stable NPL ratio suggests effective risk management.
• Strategic acquisition of Hepsiburada expands the company's international presence.

Negatives

• The e-Grocery business has a different profitability model, which has led to a reduction in the profit margin of the Marketplace Platform.
• Higher than normal interest rates directly contributed to declining profitability in the Fintech segment of our business.

Risks

• Inability to attract new customers or retain existing ones.
• Failure to maintain and improve technology infrastructure.
• Challenges in scaling the e-Grocery business and achieving sustained profitability.
• Dependence on the Kazakhstan economy and fluctuations in commodity prices.
• Exposure to credit, liquidity, and market risks.
• Potential for fraudulent or illegal activities on the platforms.
• Difficulties in integrating acquisitions and strategic alliances.
• Evolving regulatory framework in Kazakhstan.
• Potential for employee misconduct and reputational damage.
• Inadequate insurance coverage for certain risks.

Future Outlook

The company aims to continue growing transaction volumes, revenue, and net income by increasing engagement and expanding the range of services available through its Super Apps. It also plans to replicate its successful track record into new geographies.

Industry Context

Kaspi.kz operates in the mass-market online payments, marketplace, fintech and e-grocery industries in Kazakhstan, which are highly dependent on economic stability and growth, continuing increases in consumers average disposable income and levels of consumer spending. The company faces competition from foreign and domestic payment service providers, retail banks, global marketplace platforms, and online and offline retailers.

Comparison to Industry Standards

• The document does not provide enough information to make a detailed comparison to industry standards.
• A comprehensive comparison would require benchmarking Kaspi.kz's financial metrics (e.g., revenue growth, profitability, NPL ratio) against those of its direct competitors in Kazakhstan and similar fintech companies in other emerging markets.
• Comparable companies could include other super-app platforms in Asia and Latin America, as well as regional banks and e-commerce players in Central Asia.
• Specific metrics to compare would be revenue per user, customer acquisition cost, loan loss provisions, and market share in key segments.

Legal Proceedings

• A putative class action lawsuit has been filed against the company and certain officers, alleging false statements and/or omissions in its IPO prospectus and other SEC filings. The company intends to defend itself vigorously.

Related Party Transactions

• The company has entered into various agreements with Kolesa, in which Mr. Mikheil Lomtadze is a significant shareholder.
• The company has entered into various agreements with Magnum, in which Mr. Vyacheslav Kim is the beneficial owner of a controlling stake.
• Executive officers and key management personnel maintain deposit accounts with Kaspi Bank.

Stakeholder Impact

• Shareholders: Positive impact due to strong financial performance and potential for future growth.
• Employees: Positive impact due to company growth and potential for career advancement.
• Customers: Positive impact due to expanded product and service offerings and improved user experience.
• Merchants: Positive impact due to increased sales opportunities and access to new tools and services.

Next Steps

• Continue to invest in scaling e-Grocery in Kazakhstan's three largest cities.
• Expand geographical reach and profitably serve 100 million users.
• Focus on innovative product and service developments.

Key Dates